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Yeah, that's not how it works. I feel like we're talking past each other. The nature of state and federal fiscal policy is complex, but this article covers an i
by Locke1689 16y ago
Yeah, that's not how it works. I feel like we're talking past each other. The nature of state and federal fiscal policy is complex, but this article covers an introduction to it http://www.ncsl.org/IssuesResearch/BudgetTax/StateBalancedBudgetRequirements/tabid/12660/Default.aspx http://www.ncsl.org/IssuesResearch/BudgetTax/StateBalancedBu.... You'll note that there are ways that states can run deficits in practice but there are a number of restrictions which affect how appropriations work in practice.
- kgermino 16y agoHowever you will also note that budget restrictions are self-imposed by state law or state constitutions, which would likely be rewritten as the states took over more social services. Another reason that I like the idea of states and local governments handling more services is that it is politically more difficult to waste money on stupid projects. For Example: a road near my house was recently repaved using money from the stimulus. It was in fine shape before and didn't need work done but most people were not upset because the federal government payed for most, if not all, of it. However if my village said that sales taxes would be raised .25% for 6 mos. to pay for the project most of these same people would have immediately decided that repaving the road wasn't worth the cost.